Bitcoin and the Majors Take a Dive as the Bears Fight Back

After being caught out in a bear-trap, it’s been a mixed start to the day for the majors. Bitcoin will need to hold onto $10,000 to provide support…
Cryptomania

Bitcoin tumbled by 5.99% on Wednesday. Following on from a 1.33% fall on Tuesday, Bitcoin ended the day at $10,147.

A particularly bearish morning saw Bitcoin slide from a start of a day intraday high $10,825 to a mid-day intraday low $9,824.

Falling shy of the first major resistance level at $10,995.4, Bitcoin slid through the major support levels on the day.

In spite of the sell-off, however, Bitcoin steered clear of the 38.2% FIB of $9,734, supporting a partial recovery.

Bitcoin managed to move back through the third major support level at $9,971.7 to $10,000 levels late on.

Closing out the day at $10,000 levels was the only positive as the broader market went into meltdown mode.

Wednesday’s loss took a large bite out of Bitcoin’s August gains. For the current month, Bitcoin was up by just 0.58% and was the only major in positive territory in August.

Bitcoin’s hold above the 38.2% FIB of $9,734 reaffirmed the bullish trend formed at mid-December’s swing lo $3,215.2

Elsewhere

Across the top 10 cryptos, it was red across the crypto-board.

Monero’s XRM and EOS were the worst performers on the day, with losses of 6.11% and 4.71% respectively.

Bitcoin Cash SV (-4.44%), Ethereum (-4.68%), BNB (-4.2%), and Bitcoin Cash ABC (-3.64%) also saw particularly heavy losses.

On the day, Litecoin (-2.56%), Stellar’s Lumen (-2.78%) and Ripple’s XRP (-3.14%) suffered the lightest of losses in the meltdown.

Bitcoin’s strong heavy loss on the day led to a fall in dominance back to sub-69% levels.

The broad-based crypto meltdown led the total market cap from $279bn levels to a day low $258.49bn before support kicked in. At the time of writing, the total crypto market cap stood at $263.63bn.

24-hr volumes climbed from $48bn levels at the start of the day to $62bn levels as investors responded to the sell-off.

This Morning

At the time of writing, Bitcoin was down by 0.8% to $10,066.  Within the first hour, Bitcoin rose to an early high $10,163 before pulling back to an early morning low $10,056.

Bitcoin left the major support and resistance levels untested in the 1st hour.

Elsewhere, it was a mixed bag for the top 10. Tron’s TRX led the was, rising by 1.19%. EOS. (+0.62%). Binance Coin (+0.36%), and Ripple’s XRP (+0.21%) were also in the green early on.

It was red for the rest of the majors, however, with Stellar’s Lumen and Bitcoin Cash ABC seeing the heaviest losses. At the time of writing, the two were down by 2.8% and by 1.11% respectively.

[fx-image src=https://www.tradingview.com/x/0iQMrej0/ originalWidth=761 ratio=1.3 data-zoom-target=https://www.tradingview.com/x/0iQMrej0/]

For the Bitcoin day ahead

Bitcoin would need to avoid a fall back through to sub-$10,000 levels to support a move back into the green. A return to $10,265 levels would bring the first major resistance level at $10,706.67 into play.

Bitcoin would need the support of the broader market, however, to break out from $10,100 levels.

Barring a broad-based crypto rebound, however, Bitcoin will likely come up short of $10,500 levels on the day.

Failure to hold onto $10,000 levels could see Bitcoin test support at the 38.2% FIB of $9,734 before any recovery.

Barring another crypto meltdown, the first major support level at $9,705.67 should limit any downside on the day.

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